New Jobs Report Bodes Well for Commercial Real Estate

The July employment report was on par with expectations, adding 164,000 new jobs to the U.S. economy, including 148,000 in the private sector. The national labor force hit a new record total with the additional hires. The growth bodes well for commercial real estate and should help the industry avoid overheating. The national office market has shadowed the slow and steady growth of the economy. According to Transwestern research, the national office vacancy rate held steady at 9.7% in the second quarter. However, office leasing activity through mid-year was 24% lower than one year ago. Despite this decline, employment growth should keep demand for office space stable. Specifically, the office market will be driven by solid new jobs in the professional services, technology, and financial services sectors. Click to read more at